Building ng a stronge nger airline ne for the futur ure May 12, , 2016 016
Introduc ucti tion Paulo Kaki kinoff CEO
GOL – Large gest t low-cost t airline in LatAm Am Standardized fleet of 143 Boeing 737-700 and 800 NG Shareholder Structure aircraft 65 destinations of which 13 international, in the South Controlling Free Float America and Caribbean Shareholders 27.6% 61.3% 39 million passengers transported per year Treasury Stock 0.4% AF-KLM 1.2% Leading position at Brazil’s main airports with high on-time Delta Airlines 9.5% performance 860 flights per day Comprehensive Global Network serving ~319 destinations in over 58 countries +11 million members in Smiles (loyalty program) serving ~316 destinations in over 115 countries Extensive cargo operations serving more than 3,100 cities in Brazil and 15 abroad R$10 billion in revenues LT LTM 2
Best-in in-class Corpora rate te Governa rnance | First FPI to achiev eve e 404 cert rtifi ficati ation Sarb rbanes es-Oxley ey | Trac ack record rd of tran anspa pare rency and d acces ess to info form rmati ation | Equal treat eatmen ent of all inves vestors rs Best-in in-class airline & Best-in in-class governa rnance 3
Comprehe hens nsive restruc ucturi turing ng Paulo Kaki kinoff CEO
Need to restruc ructu ture re derived from m severa ral fronts ts Reces essionary ry economy | Sharp devaluation of the Real | Political instability | Inflationary pressures and high interest | Contraction of the Brazilian economy rates Sector r under der pres essure re | Decrease in demand | Ratings decline | Industry overcapacity | Operating cost increase | Labor costs | High financial expense | Scarce and expensive credit The very challenging industry and macroeconomic conditions have negatively impacted us more than our competitors due to signifi ficant leverage levels 5
GOL faces significant t economic challenge ges Brazi zil l recessio ion and currenc ncy y fall ll driv ivin ing fina nanc ncia ial l distress Brazil GDP Net Result ($M BRL) 8% 4% R$(725) 3% R$(1,117) 2% 0% R$(4,291) 2013 2014 2015 (4%) (4%) 2010 2011 2012 2013 2014 2015 2016E BRL/USD exchange rate Operating Cash Flow ($M BRL) R$565 R$565 3.90 131% 3.70 1.85 2.04 2.38 2.70 1.67 R$(144) R$(144) R$(503) R$(503) 2013 2014 2015 2010 2011 2012 2013 2014 2015 2016E 6 Source: Focus Report of May 6, 2016
Overc rcapacity ty in Brazil Growth h by small ller competit itors has offset capacit ity measur ures by larger carrie iers Domestic Brazil ASK Domestic Brazil ASK 3% GOL TAM AZUL AVIANCA 9% 11% 50,292 48,743 -14% 14% 17% 43,450 -13% 13% 42,543 42% 36% 20,332 +61% 12,654 44% 10,654 37% +231% 3,221 2011 2012 2013 2014 2015 2011 2015 7
Compreh rehensive restruc ructu turi ring g plan Began in mid-2015 to address over R$17 billion of debt and other obligations. 2015 15 - complet eted ed • Stakeholder equity injection: R$446 $446 million (controlling shareholders and Delta) • Term loan: R$1.1 1.1 billion with Delta guarantee • Suppliers terms: R$300 $300 million in annual cost-savings 2016 16 - ongoing • Aircraft partner Boeing: R$555 $555 million in PDPs • Aircraft lessors: R$220 $220 million in net present value savings • Delta Airlines: Reduction of pledge to Delta of Smiles shares • Debentures: Extensions of maturities and R$300 $300 million of new credit lines • Smiles: Advance ticket sales linked to cash generated from restructuring plan • Unsecured bondholders: Exchange offer at premium over market prices + collateral Plan addresses current nt situat ation 8
Restruc tructu turi ring g of debt t and financial obliga gati tions (R$3.0 billion) (R$2 $2.6 .6 billion) 14.7 Short-Term Short-Term 13.1 Long-Term Long-Term 5.5 10.4 9.5 4.9 2.5 2.3 9.1 8.2 7.9 7.2 Assets Liabilities Assets Liabilities December, 31 2015 March, 31 2016 9 In R$ billion
Excha hange nge offers Edmar Lopes es CFO
Exchange ge offers rs | On May 3, 2016, GOL began the final component of its restructuring plan: • Offer to exchange its U$780 million of unsecured bonds issued in the international capital markets for cash and new secured Bonds at a premium to current market value • Collateral: >100% coverage: New Secured Bonds will have structural seniority to existing Bonds due to pledge as collateral • Summary of Exchange Offers: Total Value Total Cash Total New Security Premium (3) Offered (2) Payment (2 (2) Notes (2)(3) 2017 Notes +50% 56.0 16.8 39.2 2020 Notes +20% 52.6 10.5 42.1 2022 Notes +20% 108.1 21.6 86.5 2023 Notes +20% 11.7 2.3 9.4 MATURITY Perpetual Notes +10% 51.0 - 51.0 2028 2028 Total 279.3 51.3 228.1 (in US$ million, except percentages) 11 (1) Principal Outstanding Amount multiplied by Total Exchange Consideration. (2) Assumes a 95% participation rate. (3) Over market prices as of May 11, 2016
Exchange ge offers rs • Important dates: Date Calend ndar Date Event Description Launch Date May 3, 2016. Commencement of the Exchange Offers. Early Participation 5:00 p.m., New York City time, on May 17, Validly tender Old Notes to qualify for the Early 2016. Participation Premium (5 to10%). Wi Withdrawal Deadline 5:00 p.m., New York City time, on May 17, Deadline validly withdraw tenders of Old Notes. 2016. Expiration Time 11:59 p.m., New York City time, on June 1, Deadline validly tender Old Notes to qualify for the 2016. payment. Settlement Date Expected June 8, 2016. Payment of the Total Exchange Consideration. 12
Exchange ge offers rs considera rati tions | Our ability to service our capital structure has been significantly impacted: Industry overcapacity Political & Macroeconomic conditions Significant devaluation of Real – affecting lease and interest expenses, fuel costs | Our shareholders have contributed significantly to improve the Company liquidity | All important partners are expected to provide substantial support to improving our capital structure | The exchange offer is a crucial aspect of our overall restructuring | Allows unsecured bond holders to receive cash plus new secured notes | Completion of the exchange offer will facilitate completion of contributions from partners as described Despite significant nt operating ng improvement nts, GOL needs to continu nue address capital struc uctur ure challeng nges 13
Resul ults ts 1Q16 Paulo Kaki kinoff CEO
1Q16 Highligh ghts ts Operati tional highl hlights ghts | 17.3% .3% Yield increase | 16.4% .4% PRASK increase | 5.9% ASKs reduction | 8.2% 2% reduction in takeoffs volume and the number of seats | 8.3% 3% increase in net revenues, to R$2.7 2.7 billion | Recurring EBIT of R$22 224.6 4.6 million with margin of 8.3% 3%; | EBITDAR was R$663 63.2 2 million with margin of 24.4% 4% | R$21 212.6 2.6 million of non-recurring gains on sale-leaseback transactions | 16.9% .9% increase in CASK, excluding fuel expenses and non-recurring effect 15
1Q16 LTM reflects ts new enviro ronme ment 1Q16 16 Net Revenue EBI BIT EBITD TDAR 2,713.1 663.2 2,505.2 224.6 +8.3% 153.8 +46. 6.0% 0% +41.4% 153.8 468.9 8.3% 24.4% 6.1% 18.7% 1Q15 1Q16 1Q15 1Q16* 1Q15 1Q16* Last Twelve Months 514.3 1,789.0 10,078.0 9,985.8 1,530.3 -258. 8.7 -0.9% 9% 5.1% -627. 7.3 -1,1% 17.8% 15.3% -113.0 1Q15 LTM 1Q16* LTM 1Q15 LTM 1Q16 LTM 1Q15 LTM 1Q16* LTM 16 * Does not include non-recurring gain on sale-leaseback transactions of R$212.6 million. In R$ million
1Q16 results ts impacte ted by non-rec recurri ring g effect t and net t exchange ge vari riati tion 2,713.1 66.3 2,488.5 653.5 EBIT Margi gin 8.3% 212.6 267.3 224.6 Net Revenues Costs and EBIT Ex non- Return of financial Financial Result Ex- Exchange Rate Income Tax Expenses Ex- non- recurrent effect leases aircraft and Net Exchange Rate Variation recurrent effect sale leaseback 17 Excluding non-recurring gain on sale-leaseback transactions of R$212.6 million. Values in R$ million
Need to furth ther r reduce capacity ty Supply Dema mand nd and nd load facto tor Dome mestic ASK* Dome mestic RPK* Dome mestic load factor (%) %) -2.9% -4.2% -1.1p.p 30,098 24,354 80.9% 79.8% -1.6p.p -4.0% .0% 29,220 23,327 -5.9% 78.9% 11,308 8,920 10,856 8,396 77.3% 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 Industry Industry Industry 18 *Values in millions of seat-kilometers Source: ANAC
Netw twork rk rationalizati tion results ts Decrease in Suspension of Expected Fleet available seats destinations reduction 8 of 15 15 % to 18 18 % 20 aircraft 20 Miami Ribeirão Preto Orlando Altamira Aruba Imperatriz Caracas Bauru 19
Guidance 2016 2016 Guida dance Actual Guida dance 201 016 Range ge 1Q16 Total supply (ASK) -5% 5% -8% 8% -5.9% Total seats -15% 15% -18% 18% -8.2% Total volume of departures -15% 15% -18% 18% -8.2% 20
Financ ncial Resul ults ts Edmar Lopes es CFO
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